Should my husband and I file bankruptcy?
Greetings! Well, here is a bankruptcy question that will help answer a common query. Good luck!
We are over $50k in debt and unable to crawl out of this enormous crater of a hole. Most of this debt is from medical bills, however we do have $8k in credit cards/loans too.
Him and I have both had problems finding work and when we do it is very minimal. We have a daughter together who we need to be able to support.
My questions are (1) Can we file joint or separate for bankruptcy (2) How will this affect us getting an apartment in a few months and (3) how long does a bankruptcy stay on a credit report?
We are only 23 and 24 so I never thought we would be doing this already but poor choices and poor health have led to this. We are both still diligently job hunting but so far, nothing is coming up.
Thanks for the input!
A fourth question came to mind: How much does it typically cost to file?
Yahoo Answers always has very good bankruptcy questions. Hopefully this one has benefitted you.
Have a wonderful day!
Tags: bankruptcy
November 30th, -0001 at 12:00 am
1) You can file either way, but if only one of you files the other may still be responsible for the debts – it depends on several factors.
2) Unfortunately, some landlords may not rent to someone that has recently filed bankruptcy. Many won’t care, but a few will. On the other hand, they may not rent to someone that owes $50,000 that they obviously can’t pay, either, so it is probably a wash either way.
3) The mere fact that you have filed a bankruptcy can appear on your credit report for 10 years, but if you do the right things you can rebuild your score in less than 3. Right now, every month that you miss payments your credit score gets worse. Your credit score will not improve until you resume making regular, timely payments on all of your debts. However, if you file bankruptcy, then that is the last black mark against you. From there on you are in a position to rebuild. So ask yourself, in three years, will you have paid off all of your debt? If not, then bankruptcy may, in the long run, actually be better for your credit.
4) Cost depends on the particular details of your case and the judicial district that you live in.
Nearly all consumer bankruptcy attorneys offer free consultations. Take advantage of this to meet with one and get advice based on all of the details of your particular situation. You can find a referral at NACBA.org (National Association of Consumer Bankruptcy Attorneys).
November 30th, -0001 at 12:00 am
1) You can file either way, but if only one of you files the other may still be responsible for the debts – it depends on several factors.
2) Unfortunately, some landlords may not rent to someone that has recently filed bankruptcy. Many won’t care, but a few will. On the other hand, they may not rent to someone that owes $50,000 that they obviously can’t pay, either, so it is probably a wash either way.
3) The mere fact that you have filed a bankruptcy can appear on your credit report for 10 years, but if you do the right things you can rebuild your score in less than 3. Right now, every month that you miss payments your credit score gets worse. Your credit score will not improve until you resume making regular, timely payments on all of your debts. However, if you file bankruptcy, then that is the last black mark against you. From there on you are in a position to rebuild. So ask yourself, in three years, will you have paid off all of your debt? If not, then bankruptcy may, in the long run, actually be better for your credit.
4) Cost depends on the particular details of your case and the judicial district that you live in.
Nearly all consumer bankruptcy attorneys offer free consultations. Take advantage of this to meet with one and get advice based on all of the details of your particular situation. You can find a referral at NACBA.org (National Association of Consumer Bankruptcy Attorneys).
November 30th, -0001 at 12:00 am
I think you should file together since you are married.To help you get through with the bankruptcy get a bankruptcy lawyer, it will cost you but it will also make the procedure a lot more easier than filing on your own.
November 30th, -0001 at 12:00 am
Bankruptcy just isn’t what it used to be….
Yea – I’d say to go ahead and file. If I were in your situation, I would have considered it long ago. It won’t affect your status when you try to get another place to live.
Since they changed the laws regarding bankruptcy, I can only share what I know…
It stays on your credit for at least 7 years (but like I said they may have changed that) You won’t be able to rebuild your credit until then (why Bother?). You can start by reestablishing a credit history. The problem with that is you gotta find someone that will loan you money first. And that can be tricky after filing.
IDK if you can file jointly. I have not been married.
Good luck with the rest of your life.
November 30th, -0001 at 12:00 am
Based on what you wrote it appears that you would be looking at a chapter 7 bankruptcy. It’s difficult to tell without getting into the details of your situation. But, for conversation sake, let’s discuss chapter 7.
1) You can file joint or separately. There are benefits and drawbacks to doing it both ways. To find out which way fits your situation best you will need to consult with a bankruptcy attorney in your area.
Here’s a link to help you get started:
http://www.texasbar.com/AM/Template.cfm?…
2) It’s difficult to tell you what someone else will or won’t do. Each person reviewing your rental application may look at it as being negative or positive depending on how much they know about it, what their company policy is, and/or their own personal view on the subject. If any of them should ask you about it you can tell them that, by filing a bankruptcy, they now know that you can’t file another one (at least not the same chapter) for another 8 years. Also, your debt to income ration should be better now so your ability to pay the rent should also be better. But, I’m sure there are plenty of places to rent around you so if one has a problem with it move on to the next.
3) Chapter 7 Bankruptcies stay on a credit report for 10 years.
4) Depends on whether you go with an attorney, a document preparer, or attempt to do it yourself.
ATTORNEY:
If you go with an attorney it could be all over the board. Some attorneys charge a flat fee for whatever needs to be done while others piece it out. Know which you are getting and how far your money will get you. The attorney that charges $400 for a chapter 7 bankruptcy but pieces it out may ultimately be more expensive than the attorney that charges a flat fee of $1,500.
DOCUMENT PREPARER (not recommended):
If you go with a document preparer they charge much less. $200 in my area. Understand though, a document preparer is not a licensed attorney and can’t give legal advice. They are breaking the law if they do. They type up your documents with whatever information you give them then you are on your own.
SELF PREPARED (not recommended):
This is probably the cheapest of the three. I say probably because you don’t know until it’s too late. Making a mistake could cause you to lose something that you wouldn’t have lost had you gone through an attorney. The initial cost will be the price of obtaining the bankruptcy documents.
Then your going to have to pay the court’s filing fee and a few other fees.
________
November 30th, -0001 at 12:00 am
Based on what you wrote it appears that you would be looking at a chapter 7 bankruptcy. It’s difficult to tell without getting into the details of your situation. But, for conversation sake, let’s discuss chapter 7.
1) You can file joint or separately. There are benefits and drawbacks to doing it both ways. To find out which way fits your situation best you will need to consult with a bankruptcy attorney in your area.
Here’s a link to help you get started:
http://www.texasbar.com/AM/Template.cfm?…
2) It’s difficult to tell you what someone else will or won’t do. Each person reviewing your rental application may look at it as being negative or positive depending on how much they know about it, what their company policy is, and/or their own personal view on the subject. If any of them should ask you about it you can tell them that, by filing a bankruptcy, they now know that you can’t file another one (at least not the same chapter) for another 8 years. Also, your debt to income ration should be better now so your ability to pay the rent should also be better. But, I’m sure there are plenty of places to rent around you so if one has a problem with it move on to the next.
3) Chapter 7 Bankruptcies stay on a credit report for 10 years.
4) Depends on whether you go with an attorney, a document preparer, or attempt to do it yourself.
ATTORNEY:
If you go with an attorney it could be all over the board. Some attorneys charge a flat fee for whatever needs to be done while others piece it out. Know which you are getting and how far your money will get you. The attorney that charges $400 for a chapter 7 bankruptcy but pieces it out may ultimately be more expensive than the attorney that charges a flat fee of $1,500.
DOCUMENT PREPARER (not recommended):
If you go with a document preparer they charge much less. $200 in my area. Understand though, a document preparer is not a licensed attorney and can’t give legal advice. They are breaking the law if they do. They type up your documents with whatever information you give them then you are on your own.
SELF PREPARED (not recommended):
This is probably the cheapest of the three. I say probably because you don’t know until it’s too late. Making a mistake could cause you to lose something that you wouldn’t have lost had you gone through an attorney. The initial cost will be the price of obtaining the bankruptcy documents.
Then your going to have to pay the court’s filing fee and a few other fees.
________
November 30th, -0001 at 12:00 am
1:You have to file together because you are married.
2:If you work to build your credit after bankruptcy you should be fine getting an apartment. It also depends if you had a previous landlord that filed against you or a utility company. You may also be required to pay a larger deposit.
3:Bankruptcy stays on your credit 7-10 years depending on the state you live in.
If you are going to do it then do it now because the 7-10 years are ticking. It will affect you for about 3 years but after that it gets easy again.
November 30th, -0001 at 12:00 am
1:You have to file together because you are married.
2:If you work to build your credit after bankruptcy you should be fine getting an apartment. It also depends if you had a previous landlord that filed against you or a utility company. You may also be required to pay a larger deposit.
3:Bankruptcy stays on your credit 7-10 years depending on the state you live in.
If you are going to do it then do it now because the 7-10 years are ticking. It will affect you for about 3 years but after that it gets easy again.